(a) Electric utility. At a date fixed by the Board of Directors, the government shall transfer to the Authority the right to operate all items of property, including construction in progress, equipment and machinery used in connection with the then existing electric utility operation of the government. Property jointly used for electric utility and governmental non-utility functions must be equitably allocated between the government and the authority; provided that the allocation assures the continuing efficient functioning of the electrical generations, transmission, and distribution functions of the government. In the event of dispute, the allocation is determined by the Governor. The property accounts for the Authority are valued for rate-making purposes at the depreciated acquisition cost of the property as of the date of transfer, and are included in the rate base of the authority. Future capital contributions in the Authority from the government must be by separate authorization and appropriation. The Legislature has the exclusive power to provide supplemental funding by appropriation for the operations of the Authority. These appropriations may be designated as loans and not as part of the permanent capital. The appropriations may require repayment to the government at rates of interest specified in the appropriations bills.

(b) Water and wastewater utility. At a date fixed by the Governor and the Board of Directors of the Power Authority, the government shall transfer to the Authority the right to operate all items of property, including construction in progress, equipment and machinery used in connection with the then-existing water and wastewater operations of the government. Property jointly used for water, wastewater and governmental non-utility functions shall be equitably allocated between the government and the authority, provided that the allocation assures the continuing efficient functioning of water production and distribution, and wastewater collection and disposal. In the event of dispute, the allocation shall be determined by the Governor. The property accounts for the water and wastewater utility are valued for ratemaking purposes at the depreciated acquisition cost of the property as of the date of transfer, and shall be included in the rate base of the water and wastewater utility. Future capital contributions to the Authority from the government shall be by separate authorization and appropriation. The Legislature has the exclusive power to provide supplemental funding by appropriation for operations of the water and wastewater systems of the authority. Appropriations made to the authority after October 1, 1988 for the operation of the water system may be designated as loans and may require repayment to the government at rates of interest specified in the appropriations acts. Appropriations made to the Authority after October 1, 1988 for the operation of the wastewater system shall be designated as subsidies for fiscal year 1989 and thereafter in the amount of $600,000 annually. The wastewater operation subsidy shall be adjusted annually on September 30 of each year, beginning in 1992, in proportion to the change in number of wastewater customers compared to the number of such customers on June 30, 1991 and in proportion to the annual increase in the American Samoa Consumer Price Index.